Lithium Americas Corp.
TSX : LAC

Lithium Americas Corp.

July 08, 2010 08:00 ET

Lithium Americas Corp. Reports Highest Lithium Brine Concentration Value To Date

Highlights

- Brine Concentration Averaging 946 mg/L Lithium Within 17 Metres of Reverse Circulation Hole 19 - Represents the Highest Lithium Aquifer to Date From the Company's Exploration Program

- Air Lift Testing Results Continue to Be Positive, Indicating That the Brine Can Be Extracted From the Aquifer in Significant Volume

- The Company Has Completed 35 Exploration Holes for a Total of Approximately 7,150 Metres. Only Four Additional Exploration Holes Are Required in Order to Complete the Drilling Program, Upon Which an Updated Resource Estimate Will Be Calculated

TORONTO, ONTARIO--(Marketwire - July 8, 2010) - Lithium Americas Corp. (TSX:LAC) ("Lithium Americas" or the "Company"), is pleased to report drill results from its on-going exploration program on the Cauchari salt lake in Argentina.

"We continue to find stacked, confined, lithium bearing aquifers," said Waldo Perez, President and CEO of Lithium Americas Corp. "Results from reverse circulation hole 19 of 946 milligrams per litre ("mg/L") lithium over a length of 17 metres represents the highest lithium aquifer discovered to date from the Company's exploration program. In addition to continuing to find brines yielding high lithium concentrations, the aquifers are also of outstanding thickness when compared to the lithium deposits of operating mines of similar geology," said Perez.

Drilling Results Summary

The Company has completed 35 exploration holes for a total of approximately 7,150 metres ("m") (21 reverse circulation ("RC") holes and 14 diamond drill ("DDH") holes).

RC drilling allows the Company to sample brine composition metre by metre, in addition to deriving measurements of brine extraction rates via air lift testing.

Diamond drilling allows the Company to recover the core in order to be able to measure the drainable porosity of the rocks hosting the brine. The Company has also collected brine samples from the DDH holes by inserting PVC pipe inside the hole and using a low flow pump to recover samples at 5m intervals.

Chemical results of the brine from two RC holes and four DDH holes are provided in the table below. Additional information on the location of the drill holes can be found in the corporate presentation in the investors section of the Company's web site at www.lithiumamericas.com.

Reverse Circulation Holes          
Hole #    Depth    Length        Li (mg/L)      K (gr/L) Mg/Li
PE-19 42-59 17 946 0.89 3.81
  60-132 73 738 0.59 3.09
  155-267 112 657 0.59 2.92
PE-20* 18-72 54 765 0.70 3.12
  139-150 11 696 0.63 3.29
  155-204 49 690 0.63 3.24
 
Diamond Drill Holes        
Hole #    Depth    Length        Li (mg/L)      K (gr/L) Mg/Li
DDH-6 118-190 72 703 0.64 2.15
DDH-8 20-205 185 531 0.47 2.41
DDH-4 25-120 105 548 0.5 1.86
  125-190 65 543 0.49 1.96
DDH-12 170-285 105 560 0.52 2.07

*Partial Results - there are 60 samples pending analysis from Alex Stewart laboratories

Air Lift Testing

The Company continued to perform air lift tests in order to confirm that brine could be extracted from the aquifer in significant volumes. Results from RC hole 20, between 171m and 201m, yielded results of 8.63 litres per second (average of seven determinations) on the salt/sand aquifer. Between 93m and 165m, the aquifer yielded 6.92 litres per second (average of 13 tests). These rates indicate that the aquifer is not only thick, but has high yields allowing for the extraction of brine from the aquifer.

About the Company

Lithium Americas Corp. (TSX:LAC) is a junior exploration company focused on the exploration of lithium, potassium, borax and other minerals in South America. The Company's principal and most advanced property comprises a significant portion of two adjacent Argentinean salt lakes, Cauchari and Olaroz, covering 43,451 hectares located in the Puna Plateau. The Puna Plateau is the most prolific brine reserve region globally, hosting approximately 84 percent of the world's lithium brine reserves. Based on an NI 43-101 compliant inferred in situ resource estimate of 1.58 x 1012 litres with average grade of 584 mg/L lithium and 4,860 mg/L potassium (equivalent to 4.9 million tonnes of lithium carbonate and 7.7 million tonnes of potassium), Lithium Americas' principal property is one of the largest known lithium brine deposits in the world. The Company believes the Cauchari and Olaroz property has the potential of becoming a world-class lithium deposit in both size and quality.

John Kieley, P. Geo. is the internal Qualified Person on the project who has reviewed this news release and is responsible for the technical information reported herein.

Certain information contained in this news release is based on the Company's NI 43-101 compliant technical report titled "Amended Inferred Resource Estimation Of Lithium and Potassium at the Cauchari and Olaroz Salars, Jujuy Province, Argentina" dated February 15, 2010, prepared for Lithium Americas Corp. by Mark King, a "qualified person" pursuant to NI 43-101, which can be viewed on the Company's website or at www.sedar.com, under the Company's profile. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. Investors are cautioned not to assume that part or all of an inferred resource can be upgraded to an indicated or measured resource, or is economically mineable.

Sampling and Analytical Protocols: Sampling and analytical protocols were implemented and supervised by or under the direction of John Kieley, the Corporation's internal Qualified Person as defined by National Instrument 43-101. All of the geochemical samples were collected by geologists taking into account the nature of the material being sampled. The brine samples were collected from the cyclone in a plastic container and then transferred to an unused 1 litre plastic bottle. All samples were tagged with a pre-numbered ticket and stored in a secured location at the base camp for no more than 10 days in cold, dark storage. The samples were transported by Alex Stewart Assayers Argentina S.A. ("ASAA") laboratories from the site to their facilities in Mendoza (Argentina) where they were analyzed. ASAA is an ISO 9001-2000-certified laboratory with headquarters in England. The brine samples were assayed for 13 elements. by ICP and AA. Accuracy and precision of results is tested through the systematic inclusion of blanks, standards and duplicates. Sulphate was assayed using the gravimetric method, chloride by the argentometric method and volumetric analysis (acid/base titration) was used for carbonates (alkalinity as CaCO3). Laboratory measurements were conducted for Total Dissolved Solids ("TDS"), density, and pH. Drainable porosity tests were carried out in intact diamond drill core every 3 meters on all undisturbed samples through the "Relative Water Release Capacity" method ("RWRC")" analysed by Daniel B. Stephens Inc. Laboratory in New Mexico, USA. The method calculates changes in volumetric moisture content as samples (initially fully saturated) drained over a three-day period under a vacuum suction. The drainable porosity is considered to be equal to the difference between volumetric moisture contents at the start and finish of the test .The samples were collected in a tightly enclosed, plastic container and shipped from Jujuy Province by DHL to the lab in the USA.

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. Readers should review the Company's prospectus dated May 6, 2010 for a list of risks associated with the Company and its business.

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